Assets Utilization and Profitability- A study on select Cement Companies in India

Abstract

Asset utilization deals with the financial health of a company and it also plays an important role in mm:imizing the shareholders wealth. Asset utilization ratios provide measures of management effectiveness. These ratios serve as a guide to critical factors concerning the use of firms assets, inventory and accounts receivable collections in day to day operations. The aim of the study is to measure the pe,formance of ten select cement companies in India in terms of profitability and asset utilization during the period of observation and to exhibit the relationship between profitability and the asset utilization of the ten select cement companies in India during the period of observation. Ten cement companies has been selected on the basis of their total assets on a particular day and the period of the study is five years from 2013-2017. It can be said from the conclusion that there is a relation between profitability and asset utilfr:.ation ratio in case of Shree cement, Ramco cement, J.K.Cement and J.K.Lakshi Cement